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Government pledges support for rural businesses

The government has pledged to help rural businesses which are struggling because of the recession.

Hilary Benn, the minister for the environment, food and rural affairs, said today that rural businesses are "vital" to the UK's economy.

He added that businesses in rural areas make up around one-quarter of the total number of businesses in the UK, employ more than 5.5million people and have a combined turnover of more than £300billion a year.

In a statement, Mr Benn said: "The recession is making life hard for many communities and businesses. That's just as true of rural communities as it is of our towns and cities.

"The government's job is to continue to do what we can to help - on bank lending, on support to businesses, and assistance for those who lose their jobs."

Recently, the government announced the creation of a £100 billion fund aimed at encouraging banks to lend more to small businesses.